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Article: Tax aspects of restricted stock and stock options. (The 2002 Law Journal).
- Article from:
- Business North Carolina
- Article date:
- October 1, 2002
- Author:
CopyrightCOPYRIGHT 2002 Business North Carolina. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Equity-based compensation is often used to attract, retain and motivate key employees in lieu of substantial cash compensation. In a public corporation, it is used to get key employees to perform in a manner that will cause the value of the stock to increase in the public market. In closely held corporations, stock compensation may have less value if there is no market in which to sell it. Sometimes its value to the key employee lies in the promise or hope of a sale of the company, a public offering of its stock or a price determined by a buy-sell agreement. Equity-based compensation may be structured to provide tax advantages of the employee based upon the differential ...